Fujita Corp. said Wednesday a fund led by Goldman Sachs and Mori Trust Co. agreed to inject 41 billion yen in fresh capital, making the U.S. investment bank and its partners the troubled construction firm's largest shareholder.
"Goldman Sachs and we share the same view on our drastic financial reform and future growth," Fujita President Keizo Harada told a news conference. As a result of the deal, the fund will have a 55 percent stake in Fujita.
Goldman Sachs meanwhile said it and its partners consider Fujita an "attractive investment." It also said the contractor is expected to boost its performance on back of Goldman Sachs' client base as well as its and Mori Trust's real estate knowhow.
Goldman Sachs will make its investment through its fund GS Capital Partners.
Although Fujita said in a plan announced in March that it would seek capital from the U.S. investment fund LoneStar Group, it eventually picked up Goldman Sachs because it offered the best terms, company officials said.
They declined to elaborate further, except to say the mid- to long-term holding of its shares was one of the conditions for participating in the bidding.
Many funds, including the one by Goldman Sachs, are trying to make profits by investing in distressed businesses and selling higher upon turning them around.
Fujita also said it will ask Sumitomo Mitsui Banking Corp. and other lenders for debt-forgiveness to the tune of 98.9 billion yen. Harada said he will resign June 29 to take responsibility for Fujita's woes.